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WW International Has $300B Addressable Market, Jefferies Says In Bullish Initiation

Macro trends are favorable for WW International Inc (NASDAQ: WW), and its digital shift is likely to boost margins and capital returns, according to Jefferies.

Benzinga · 05/13/2020 15:48

Macro trends are favorable for WW International Inc (NASDAQ: WW), and its digital shift is likely to boost margins and capital returns, according to Jefferies.

The WW International Analyst

Stephanie Wissink initiated coverage of WW International with a Buy rating and $32 price target.

The WW International Thesis

The COVID-19 health crisis has unlocked a durable trend of making wellness a priority, which creates better growth prospects for WW International, Wissink said in a Tuesday initiation note. (See her track record here.)

Established brands with modern platforms are well-positioned in today's environment, “given scale, resources to acquire & retain customer relationships, and to develop unique content & connected communities,” the analyst said. 

WW International has reinvented itself, creating a new brand with a digital experience known as myWW, she said. 

With this, the company has expanded beyond diets, Wissink said. While the company previously addressed an $18-billion weight management market, its shift to overall wellbeing implies a target market of $300 billion, the analyst said. 

WW International faces a “multi-year growth trajectory” in subscriptions and revenue per user, she said. 

“We are intrigued by WW's position as an accessibly priced, leading digital solution for individuals who seek & will pay for an integrated wellness lifestyle platform.”

WW Price Action

Shares of WW International were up 8.32% at $25.44 at the time of publication Wednesday.

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